The UK should do all it can to “keep delaying” new IORP Directive proposals, before they cause considerable damage to the economy, the National Association of Pension Funds (NAPF) chairman Mark Hyde Harrison has advised.

Speaking at OPDU’s annual meeting, Hyde-Harrison stated that regulation within the IORP Directive is “not necessary”. He added that “an alliance consisting of the UK, Ireland, the Netherlands and Germany has started to raise doubt” around the directive’s policies in particular proposals to impose Solvency II style capital requirements on pension funds and has caused “people to be uncertain that if it is taken to a vote, that it will definitely be passed”.

Hyde Harrison argued that whilst the aim for the IORP Directive is to harmonise regulation across Europe and to have the ability to have cross-border pension schemes operating in any country, it will significantly affect the balance between member security and supporting the economy. He added that a strong economy produces strong companies and stronger pensions but the funding impact of the directive would hamper this. TPR has estimated that the IORP Directive would cost employers around £350bn.

Finally, the NAPF chairman concluded that he hopes that the directive will be delayed right up until European Commissioner Michel Barnier’s end of term in February 2014.

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